Toronto Housing Trends and Affordability Report Released

Toronto real estate market stabilized, affordable

The annual Housing Trends and Affordability Report from the Royal Bank of Canada was released at the end of November, showing that home ownership is more affordable across the country and improved for Toronto in the third quarter of 2010.

Affordability numbers for homes in Toronto and other cities.

According to the report, the Toronto-area market has stabilized and is heading towards more sustainable levels of activity.

Toronto RBC Housing Affordability Measures

Affordability is measured by the amount of homeowner income that is spent on homeownership costs every year.

Detached Bungalow:

Q3 2010: 47.2%
(Average 48.2% since 1985)

Standard Two-Storey:

Q3 2010: 56.2%
(Average 53.4% since 1985)

Standard Condominium:

Q3 2010: 31.8%
(Average 31.1% since 1985)

It’s also a great time to invest in a condominium in Toronto, with lower prices than cities like Vancouver ($309,900 vs. $390,400) and an average price increase year over year of 5.6%.

The improvement of the market in early fall was proof that the pending Harmonized Sales Tax earlier this year and the new mortgage rules made Torontonians buy sooner, rather than the decline soon after being a result of a lack of demand. As many have said, anyone buying a home this year already did in the spring.

For more numbers and comparisons between Toronto and other cities, visit the report here.

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